Would you accept this WaMu Modification?

[thenoid2008]

Hey All,

I was recently successful in getting a loan modification from WaMu. It took many months to get this far, so if you're trying to obtain a modification, keep trying. Eventually the persistence will pay off.

Now that I have the mod, I am not sure if it's something I should accept or not. I figured I'd post the details here (I just found this amazing resource yesterday), and take from the collective wisdom for the group. Any thoughts, opinions, etc - are very much appreciated.

House was purchased in 2005 for $216k. At the time, it appraised for about $240k in Ohio. Currently the house will appraise for about $190k - $200k. I had it on the market for 90 days at $209 and got no bites.

I was on a variable rate. It started at 7.55%, and adjusted to 9.55%.

The reason I got behind was income and job related. I went from a great six figure income, to a roughly a third of that in the blink of an eye.

WaMu is offering to put what I'm behind on the back of the loan. So now I would owe $242k. They'll fix my rate at 7.25%.

My wife and I aren't very excited about the prospect of foreclosure, but we're also not very excited about owing $242k on a house that's worth at max $200k. That "sticks" us in this house for a long time. The new payments with our new income are kind of stretch. We can do it, but it's going to be tough.

What would you do? Would you negotiate better terms? Walk away? hand it over to an attorney?

Once again, I appreciate any advice. I'll post the final details of what happens in hopes that somebody else can benefit from it.

[Moe Bedard]

Hi thenoid2008,


Welcome to the forum and thank you for joining.............

The workouts come from the investors on the loans so this might be it from the investor on your loan, but it doesn't hurt to ask.........

The past due amounts and fees as a part of the modification, are either put back into the principle balance as a whole, or a partial amount is given as a good faith payments and the remainder is put into the principle balance.

Please keep us posted on how it turns out............


Washington Mutual
Loss Mitigation
1-877-533-8960

[shannahan]

Wamu just offered us a loan mod of putting the $6500 worth of missed payments and fees on the end of the loan, lowered the interest to 4.5%, and extending it to 40 years to keep the payments low. We are rejecting it. I don't have an opinion for you, but wanted to let you know what they offered us in case it could help you.

[Moe Bedard]

Please keep in mind that every workout is going to be different for each member......... because it depends on the pool of investors on the loans, what is in default, what the interest rate is at, so no two workouts end up being the same................

[thenoid2008]

If your lender works out a loan modification for you and you then fall behind on it, what happens? Does it go through the same foreclosure process again or does it pick up where it left off prior to the mod?

[Steve Donlin]

I am curious, and don't have an opinion either way, but why would you reject this kind of a mod? Did it not accomplish what you needed? Looking for some principal reductions, did you think you should have gotten something lower?

On the face of it, this offer is pretty decent, but likely there is something we don't see here.

Originally Posted by shannahan

Wamu just offered us a loan mod of putting the $6500 worth of missed payments and fees on the end of the loan, lowered the interest to 4.5%, and extending it to 40 years to keep the payments low. We are rejecting it. I don't have an opinion for you, but wanted to let you know what they offered us in case it could help you.